Posted on 05 July, 2018 in Advice, Banking, Cash Flow, GST, Small Business, Tips, Xero

Stripe; how to get paid painlessly

So you are probably well aware by now that I am a BIG fan of automation, or what I like to call automagical (you’re welcome). Why spend your valuable time on something when fantastic software or outsourcing systems can do the dreary stuff for you?! This is why I have fallen in love with Stripe. A pain point for a lot of business owners is payments. It’s starts with a fabulous invoice and great intentions. Clients open it (awesome, here comes the pay packet) and then, inevitably one thing rolls into another, distractions happen, meetings are scheduled…before we know it, our invoice is at the bottom of a very long list of priorities.

What are we to do? Our time-poor clients are swamped and we are super tired of sending reminder notifications. I have the answer! The key is to make it as simple as possible for our clients to pay us. We all know that overwhelming feeling when faced with a long list of ‘stuff to do NOW’; if we can help our clients overcome this everybody wins. In walks Stripe, an online payment gateway that can be integrated into your invoices to prompt your clients to pay effortlessly. A huge green button shouts ‘pay now’ as your client opens their invoice online. Seamlessly, they click onto this button and are taken to a magical place where card details are entered and a payment is made. It’s a beautiful, beautiful thing.

How does it work?

You can very simply link your Stripe account to Xero. Here’s a shameless shout out to Xero while we’re here; Xero continually strives to make things easy for you, the business owner, and Stripe is very simple to integrate into their system. The online version of your invoice will be populated with that famous big green “pay now” button, which takes the customer to a secure payment gateway where they can enter their card details with peace of mind.

Setting up the payment gateway

In Xero go to Setting/ General Settings/ Payment Services/ add payment service/ select stripe and follow the prompts to complete the integration. It’s super easy to do.

Fees- what’s your time worth?

Yes, there is a fee for this service but it is nothing compared to the time it will save you chasing clients to pay. Asking a business to put you at the top of their priority list can be really hard going and very time consuming. The conversation is suddenly changed when using Stripe, “I don’t have time” is rendered void when that fancy green button is forever in their face!

The numbers? For domestic cards the standard fee is 1.75% + 0.30 cents per transactions.

Reconciliation

The integration works a treat! Your bank feed automatically matches the sales invoice with the Stripe deposit, the Stripe fee is also automatically created. Your sweet sweet time is yours once again!

If you would like to know more about Stripe head to the website www.stripe.com

Kath xx